PFT #63 - Bonus Personal Finance Tip of the Week: Child Tax Credits When Filing with Uncle Sam

<p><span style="font-weight: 400;">This topic centers on the early child tax credit and filing your 2021 taxes.</span></p> <p><span style="font-weight: 400;">In an effort in 2021by the US government they wanted to provide more families with additional cash in their pockets, they issued early child tax credits from July through December. </span></p> <p><span style="font-weight: 400;">If you qualified, these monthly payments were advances on 50% of the credit. </span></p> <p><span style="font-weight: 400;">In the past they would have been issued in the following calendar year when filing taxes</span></p> <p><span style="font-weight: 400;">So, when preparing your documents, be sure you have received a mailed document from the IRS, titled Letter 6419. If you are married, two letters will be issued.</span></p> <p><span style="font-weight: 400;">In short, on the form Box 1 is for the total dollar amount of money you received for the advance child tax credit payments over six months in 2021.</span> <span style="font-weight: 400;"><br /></span><span style= "font-weight: 400;"><br /></span><span style= "font-weight: 400;">Box 2, is the number of qualifying children that were taken into account when the advance payments were determined for 2021. </span></p> <p><span style="font-weight: 400;">This is important as some families have new additions from when the credits were issued.</span></p> <p><span style="font-weight: 400;">So here’s a couple points of note - when it comes to filing and you have not received the letter, you can go the IRS website at the</span> <a href= "https://www.irs.gov/credits-deductions/child-tax-credit-update-portal"> <span style="font-weight: 400;">Child Tax Credit Update Portal</span></a> <span style="font-weight: 400;">- you can find the link in the podcast show notes</span></p> <p><span style="font-weight: 400;">Secondly, keep in mind that the amount you owe or receive each year may be different from what you're accustomed to. </span></p> <p><span style= "font-weight: 400;">https://www.irs.gov/cr